MIRA INFORM REPORT

Report Date :

14.02.2012

IDENTIFICATION DETAILS

Name :	BANDHAN FINANCIAL SERVICES PRIVATE LIMITED (w.e.f. 27.04.2007)
Formerly Known As :	GANGA NIRYAT PRIVATE LIMITED
Registered Office :	DN-32, Sector-V, Salt Lake City, Kolkata – 700 091, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.08.1995
Com. Reg. No.:	21-073339
Capital Investment / Paid-up Capital :	Rs.863.333 millions
CIN No.: [Company Identification No.]	U70101WB1995PTC073339
TAN No.: [Tax Deduction & Collection Account No.]	CALG04731G
PAN No.: [Permanent Account No.]	AABCG0611R
Legal Form :	Private Limited Liability Company
Line of Business :	Subject operates as a Microfinance Institution in India.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 15079000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Head Office :	DN-32, Sector-V, Salt Lake City, Kolkata – 700 091, West Bengal, India
Tel. No.:	91-33-23346751/ 66090909/ 27062396/ 23347602
Fax No.:	91-33-66090502/ 23347600
E-Mail :	companysecretary@bandhanmf.com info@bandhanmf.com
Website :	http://www.bandhanmf.com http://www.bandhan.org

DIRECTORS

As on 25.06.2011

Name :

Mr. Chandra Shekhar Ghosh

Designation :

Chairman cum Managing Director

Address :

B5, Survey Park, Santoshpur, Kolkata – 700 075, West Bengal, India

Date of Birth/Age :

08.08.1960

Date of Appointment :

01.04.2007

DIN No.:

00342477

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U70101WB1995PTC073339	Bandhan Financial Services Private Limited	Managing director	01-04-07	05-04-06	Active	NO

Name :

Mr. Ajit Kumar Roy

Designation :

Director

Address :

28E, Kali Charan Ghosh Road, Kolkata – 700 050, West Bengal, India

Date of Birth/Age :

27.01.1934

Date of Appointment :

14.09.2007

DIN No.:

01760008

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U70101WB1995PTC073339	Bandhan Financial Services Private Limited	Director	14-09-07	14-09-07	Active	NO

Name :

Amitava Sanyal

Designation :

Director

Address :

89, Tanupukur Road, Dhakuriaa, Kolkata – 700 031, West Bengal, India

Date of Birth/Age :

08.05.1948

Date of Appointment :

24.04.2006

DIN No.:

00342444

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U70101WB1995PTC073339	Bandhan Financial Services Private Limited	Director	24-04-06	24-04-06	Active	NO
2	U74999WB2011PTC160879	Prudent Reporting Analysis Private Limited	Director	20-12-11	20-12-11	Active	NO

Name :

Mr. Yogesh Chand Nanda

Designation :

Director

Address :

GH 4, Flat No.14C, Orchid Garden, Sun City, Sector 54, Gurgaon, Haryana, India

Date of Birth/Age :

13.06.1943

Date of Appointment :

03.06.2009

DIN No.:

01643316

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74999DL2004PTC128172	Ishara Foundation for Finance and Rural Development	Director	05-09-05	05-09-05	Active	NO
2	U74899DL1999PLC109396	Micro Credit Ratings International Limited	Director	30-09-08	10-03-08	Active	NO
3	U65990MH1968GOI013983	Agricultural Finance Corporation Limited	Director	17-09-08	17-09-08	Active	NO
4	U72900MH2007GOI168035	Suuti Tech Options Limited	Director	12-12-08	12-12-08	Active	YES
5	U70101WB1995PTC073339	Bandhan Financial Services Private Limited	Director	03-06-09	05-05-09	Active	NO
6	U65921PB1994PTC015291	Ishara Finance and Rural Development Private Limited	Director	30-09-09	30-09-09	Active	NO
7	U65999MH2010PTC200737	AFCL Finance Services Private Limited	Director	11-03-10	11-03-10	Active	NO
8	U65100TN2007PTC064069	Equitas Micro Finance India Private Limited	Additional director	09-08-11	09-08-11	Active	NO

Name :

Mr. Vishwanath Prasad Singh

Designation :

Director

Address :

B 303, Chaitanya Towers, Prabhadevi, Dadar (West), Mumbai – 400 025, Maharashtra, India

Date of Birth/Age :

25.01.1944

Date of Appointment :

03.06.2009

DIN No.:

00015784

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L72200AP1994PLC017211	Goldstone Technologies Limited	Director	01-06-05	01-06-05	25-07-08	Active	NO
2	L28100KA1986PLC049077	Parrys Sugar Industries Limited	Director	24-10-05	24-10-05	27-08-10	Active	NO
3	L74899DL1993GOI054155	Oil and Natural Gas Corporation Limited	Director	26-06-06	26-06-06	26-06-09	Active	NO
4	U27100MH2000PLC125893	SKS Ispat and Power Limited	Additional director	11-08-07	11-08-07	28-02-09	Active	NO
5	L85110KA1988GOI008959	Mangalore Refinery and Petrochemicals Limited	Director	02-08-08	29-10-07	26-06-09	Active	NO
6	U70101WB1995PTC073339	Bandhan Financial Services Private Limited	Director	03-06-09	05-05-09	-	Active	NO
7	U17119DN1982PLC000092	Krishna Knitwear Technology Limited	Additional director	04-08-09	04-08-09	03-04-10	Active	NO
8	U65921MH1994PTC173469	Money Matters Financial Services Limited	Director	22-09-09	21-08-09	21-12-10	Active	NO
9	U65999MH2009FLC196922	Smc Finvest Limited	Director	06-11-09	06-11-09	30-06-10	Active	NO
10	L74999MH1983PLC029752	Supreme Infrastructure India Limited	Director	20-09-10	20-01-10	-	Active	NO
11	U65991MH1994PTC078879	JM Financial Asset Management Private Limited	Director	22-07-11	31-08-10	-	Active	NO
12	U45203WB1995PLC073116	Zoom Enterprises Limited	Director	28-09-11	31-03-11	-	Active	NO
13	L55100GJ1991PLC015839	Royale Manor Hotels and Industries Limited	Director	30-09-11	11-05-11	-	Active	NO

Name :

Mr. Rajendra Kumar Ghosh

Designation :

Director

Address :

Digantika Tentultala (Narayanpur), PO Rajarhat, Gopalpur, Kolkata – 700 136, West Bengal, India

Date of Birth/Age :

01.03.1943

Date of Appointment :

16.07.2010

DIN No.:

03089022

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U70101WB1995PTC073339	Bandhan Financial Services Private Limited	Director	16-07-10	03-05-10	Active	NO

Name :

Mr. Natarajan Raman

Designation :

Director

Address :

Flat No.303-B Block, Arif King Apartments, 6BY3, Mall Avenue, LBS Marg, Lucknow – 226 001, Uttar Pradesh, India

Date of Birth/Age :

29.05.1955

Date of Appointment :

16.07.2010

DIN No.:

03062858

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U70101WB1995PTC073339	Bandhan Financial Services Private Limited	Nominee director	16-07-10	03-05-10	-	Active	NO
2	U74899DL1996PLC081127	Bhartiya Samruddhi Finance Limited	Nominee director	29-07-11	02-09-10	11-08-11	Active	NO
3	U65100TN2007PTC064069	Equitas Micro Finance India Private Limited	Nominee director	11-08-11	11-08-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.06.2011

Names of Shareholders	No. of Shares
Chandra Shekhar Ghosh	1535378
Nilima Ghosh	859911
Swapan Kvmar Saha	330711
Rabindra Nath Biswas	23378
Satyajit Ghosh	336933
Vaskar Chandra Ghosh	24289
Swapan Kumar Ghosh	19289
Arpita Sen	6222
Ronendra Chowdhury	6222
Partha Pratim Samanta	317333
Pritish Kumar Saha	322333
Saikat Banerjee	6222
Maneeta Rathore	6222
Piyali Bhattacharjee	6222
Anirban Sarkar	6222
Amit Kumar Sanki	25822
Amalesh Sharma	6222
Jayita Nandi	6222
Mrinmoy Mondal	7778
Manoj Mitra	4667
Sudhanya Nopti	38889
Biplab Sen	5389
Satyajit Sankhari	4667
Sanjit Chandra Roy	3889
Mritunjoy Mondal	7778
Kalyan Das	3889
Nilavo Seal	6667
Debashis Mondal	11667
Kalyan Kundu	319000
Subodh Nandi	3889
Tapan Kumar Kundu	6389
Ramaprasad Mohanto	6867
Chandra Shekhar Ghosh (Representative of Bandhan Employees Welfare Trust, India)	18680922
Small Industries Development Bank of India, India	9333333
Suvendhu Chakraborty	5000
Sudipto Gharami	7500
Prashanta Roy	5000
Suman Bardhan	5000
Hriday Sen	3000
Pankaj Paul	500
Subodh Majumbdar	4000
Subhash Chandra Bose	2000
Fatik Bera	2500
Sukumar Biswas	5000
Pravakar Ghosh	3000
Yogesh Chand Nanda Vijayalakshmi Das Jayanta Choudhury (Representative of Financial Inclusion Trust, India)	44000000
Rajendra Kumar Gosh Narasimhan Srinivasan Sanjit Kumar Mallick (Representative of North East Financial Inclusion Trust, India )	10000000
Total	86333333

As on 25.06.2011

Equity Share Breakup	Percentage of Holding
Category
Nationalised or other banks	10.81
Directors or relatives of directors	2.80
Other top fifty shareholders	86.39
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject operates as a Microfinance Institution in India.
Services :	Financial Services

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Syndicate Bank, Camac Street Branch, 26, Shakespeare Sarani, Kolkata – 700 017, West Bengal, India

v Indian Overseas Bank, Free School Street Branch, 6, Royd Street, Kolkata – 700 016, West Bengal, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Banks [Secured by hypothecation of portfolio loans and by a lien on bank deposits of Rs.200.592 millions (Previous Year: Rs.83.144 millions)]	13632.829	9223.014
From Financial Institutions [Secured by hypothecation of portfolio loans and by a lien on deposits with Financial Institutions of Rs.179.442 millions (Previous Year: Rs.156.722 millions)]	4710.000	3670.000
From non banking financial companies (Secured by hypothecation of portfolio loans)	133.612	485.278
Total *	18476.441	13378.292

[* Includes Rs.250.000 millions (Rs.960.000 millions) for which the creation of security has been done subsequent to the Balance Sheet date.]

Banking Relations :	--
Financial Institution :	Tata Capital Limited, One Forbes, Dr. V.B. Gandhi Marg, Fort, Mumbai – 400 001, Maharashtra, India
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	22, Camac Street, 3^rd Floor, Block – C, Kolkata – 700 016, West Bengal, India
Income-tax PAN of auditor or auditor's firm :	ABSFS4151K

CAPITAL STRUCTURE

After 25.06.2011

Authorised Capital : Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital : Rs.969.288 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000,000	Equity Shares	Rs.10/- each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
86,333,333	Equity Shares	Rs.10/- each	Rs.863.333 millions

(Out of the above, 10,000,000 Equity Shares were issued for consideration other than cash)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		863.333	763.333	240.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2906.527	1230.385	77.641
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3769.860	1993.718	317.641
LOAN FUNDS
1] Secured Loans		18476.442	13378.292	2180.930
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		18476.442	13378.292	2180.930
DEFERRED TAX LIABILITIES		0.000	26.575	0.000
TOTAL		22246.302	15398.585	2498.571
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		472.273	577.876	8.348
Capital work-in-progress		27.572	0.000	0.000
INVESTMENT		2.000	2.000	0.000
DEFERRED TAX ASSETS		5.864	0.000	0.352
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	5385.114	5854.854	1319.053
	Other Current Assets	220.801	61.869	106.010
	Loans & Advances	21306.725	12149.320	1497.940
Total Current Assets		26912.640	18066.043	2923.003
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	172.928	681.126	5.335
	Other Current Liabilities	4840.874	2555.877	360.404
	Provisions	160.245	10.829	68.109
Total Current Liabilities		5174.047	3247.832	433.848
Net Current Assets		21738.593	14818.211	2489.155
MISCELLANEOUS EXPENSES		0.000	0.498	0.716
TOTAL		22246.302	15398.585	2498.571

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income from Operations	5012.332	2697.154	367.691
		Other Income	197.852	43.559	2.659
		TOTAL (A)	5210.184	2740.713	370.350
	EXPENSES
		Office Expenses	1290.332	577.430	214.384
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	1290.332	577.430	214.384
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3919.852	2163.283	247.198
Less	FINANCIAL EXPENSES (D)		1966.029	946.264	90.155
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1953.823	1217.019	157.043
Less/ Add	DEPRECIATION/ AMORTISATION (F)		174.159	78.210	1.078
	PROFIT BEFORE TAX (E-F) (G)		1779.664	1138.809	155.965
Less	TAX (H)		603.522	402.731	53.778
	PROFIT AFTER TAX (G-H) (I)		1176.142	736.078	102.187
	Earnings Per Share (Rs.)		13.76	12.91	8.83

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	22.57	26.86	27.59
Net Profit Margin (PBT/Sales)	(%)	35.51	42.22	42.42
Return on Total Assets (PBT/Total Assets}	(%)	6.50	6.11	5.32
Return on Investment (ROI) (PBT/Networth)		0.47	0.57	0.49
Debt Equity Ratio (Total Liability/Networth)		6.27	8.34	8.23
Current Ratio (Current Asset/Current Liability)		5.20	5.56	6.74

LOCAL AGENCY FURTHER INFORMATION

NATURE OF OPERATIONS:

The Company is engaged in Micro Finance lending activities for providing financial service to the poor women in the rural and urban areas of India who are organised into small groups. The Company provides small value collateral free loans for a tenure of 52 weeks for income generating activities to poor women and for Health Care and Education to their families.

All Collections are conducted in Group Meetings organized near the habitats of these poor women and disbursement to borrowers are made at branch offices. The operations, In the initial stages of group formations, involves efforts on educating members on financial discipline, constant monitoring through weekly meetings and providing financial and support services at the doorsteps of the borrowers to ensure high rate of recovery.

BUSINESS ACTIVITIES

Presently the Company operates in 18 States and Union Territories, viz. Tripura, West Bengal, Bihar, Assam, Jharkhand, Meghalaya, Maharashtra, Delhi, Haryana, Uttar Pradesh, Rajasthan, Gujarat, Uttarakhand, Madhya Pradesh, Chattisgarh, Sikkim, Orissa and Dadra and Nagar Haveli. The Company is carrying out Micro Finance activities since last five years, first year of operation being 31^st March 2007. The company has registered a phenomenal growth in the last three years.

The other relevant business parameters were as follows:-

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
Total No. of Branches	1553	1050
Total No. of Members	3,579,715	2,524,935
Total no. of Borrowers	3,254,913	2,301,433
Total amount of Loan Disbursed	99159.600	26968.911
Total amount of Loan Outstanding	25027.500	11950.569
Repayment Rate	99.53%	99.92%

FINANCIAL ASSISTANCE FROM BANKS:

During the year, the company received financial assistance from various banks/ financial institutions. The company has banking relationship with 29 banks.

The total financial assistance received from banks and financial institutions stood at Rs.17620.000 millions.

FORM 8:

Corporate identity number of the company	U70101WB1995PTC073339
Name of the company	BANDHAN FINANCIAL SERVICES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	DN-32, Sector-V, Salt Lake City, Kolkata – 700 091, West Bengal, India E-Mail: companysecretary@bandhanmf.com
This form is for	Creation of charge
Type of charge	Book Debts
Particular of charge holder	Syndicate Bank, Camac Street Branch, 26, Shakespeare Sarani, Kolkata – 700 017, West Bengal, India E-Mail: wb.9591kolcamacst@syndicatebank.co.in
Nature of description of the instrument creating or modifying the charge	Composite hypothecation agreement dated 01.02.2012
Date of instrument Creating the charge	01.02.2012
Amount secured by the charge	Rs.750.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: BR+2.80% i.e. 13.55% p.a. (floating) Terms of Repayment: Principal to be repaid in 30 equal monthly installments after 5 months moratorium. Interest shall be serviced every month separately including during the moratorium. Margin: 10% of the receivables (created out of the financial assistance received from the Syndicate Bank) outstanding at any point of time Extent and Operation of the charge: Hypothecation by way of first charge on receivables/book-debts created out of the financial assistance received from the Syndicate Bank
Short particulars of the property charged	Hypothecation by way of first charge on receivables/book-debts created out of the financial assistance received from the Syndicate Bank

FIXED ASSETS:

Tangible Assets

v Furniture and Fixtures

v Computers

v Air Conditioners

v Office Equipments

v Motor Cycles

v Motor Cars

Intangible Assets

v Intellectual Property Rights

v Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.32
UK Pound	1	Rs.77.84
Euro	1	Rs.65.35

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.